How to buy Tesla shares in Australia

Recently, the U.S. share market has shown complex and volatile dynamics. While concerns about a rebound in inflation remain, investors' optimism about policy changes has boosted market sentiment. In such a market environment, Tesla's share performance was very attractive.

In particular, Musk's full support for Trump during the U.S. election directly fueled a rise in Tesla's share price of about 40% to a two-year high, and Tesla's total market capitalisation has now exceeded the $1 trillion mark. Tesla has not only made impressive achievements in the field of electric cars, but has also shown strong competitiveness in areas such as solar panel manufacturing and self-driving technology. As Tesla's influence grows, its share has also become the focus of market attention.

This article will explore the performance of Tesla shares and provide guidance on how to buy Tesla shares in Australia.

Tesla for Australian investors

Tesla Inc. is an American electric vehicle and clean energy company founded in 2003 by Martin Eberhard and Marc Tarpenning. Tesla not only produces electric vehicles, including sedans, sports cars and pickup trucks, but also electric powertrain components and systems and related services, and is also involved in energy generation and storage systems, including batteries, solar roof tiles and solar panels.

In the energy generation and storage segment, Tesla designs, manufactures, installs, sells and leases solar energy generation and energy storage products, as well as provides related services to residential, commercial and industrial customers and utilities. These products are offered through its website, stores and galleries and through a network of channel partners.

Tesla is recognised for its cutting-edge electric vehicle technology, encompassing models like the Model 3, Model Y. The company is also gearing up to launch new vehicles, including the Cybertruck, Semi, and the next-generation Roadster. Tesla has several manufacturing plants around the world, including five in the U.S., one in China and one in Germany.

How have Tesla shares performed?

Tesla made its share market debut in 2010 at $3.84 rising 8,911% to $346 today. Tesla's share has shown significant growth in 2024. Tesla's share has also been affected by market sentiment recently, especially after the results of the U.S. presidential election, where investors were optimistic about Tesla's prospects, believing that Trump's re-election could have a positive impact on Tesla. Tesla's share price rose about 29% in the week after the election, and its market capitalisation exceeded $1 trillion.

Tesla's Q3 2024 earnings data showed that Tesla's revenue for the period was $25.182 billion, an increase of 8% year-over-year. During the earnings call, Tesla CEO Musk said Tesla plans to start rolling out more “affordable” models in the first half of 2025. Tesla's car sales will grow 20% to 30% next year due to the arrival of lower-cost cars and Autopilot.

How to buy Tesla shares in Australia

Buying Tesla shares in Australia can be done through an Australian online trading platform such as moomoo. Below are the basic steps for buying Tesla shares using moomoo, as well as a brief introduction to using its “Fibonacci Trend Expansion” tool:

Steps to buy Tesla share:

1. Open an account: Firstly, you need to open a trading account on moomoo. This usually involves providing some personal information and completing a verification process.

2. Deposit funds: Once the account has been opened, you will need to deposit funds into the account. Moomoo supports a variety of payment methods, including bank transfers.

3. Search for Tesla's share: Type "TSLA"  into the search bar on the moomoo platform to find Tesla share. You'll see current prices, historical price charts, and more information.

4. Set up a buy order: Once you've decided to buy Tesla share, set up an order on the moomoo platform. You can choose how much you want to invest and set stop-loss and take-profit levels to manage your risk.

Fibonacci Trend Expansion tool:

Fibonacci trend expansion is just one of moomoo's many technical analysis tools that help traders identify potential support and resistance levels, as well as possible price targets. Here is how to use Fibonacci Trend tool on moomoo.

1. Plotting Fibonacci Extensions: In an uptrend, you need to find two major points (usually the high and low of the wave) and plot Fibonacci extension lines. These lines are usually located at 0%, 38.2%, 50%, 61.8%, and 100%.

2. Identifying price targets: With these three points, traders can plot Fibonacci extensions. When the price retraces to a certain point, the trader can determine the possible future price targets based on the expansion line, looking for entry and exit opportunities.

3. Set take-profit and stop-loss: In practice, you can set the take-profit level in the Fibonacci expansion of the high level, while according to market volatility to set the stop-loss level, in order to reduce risk.

4. Risk management: When the price is close to the target range of the Fibonacci expansion, traders can consider entering long or short. At the same time, the Fibonacci expansion line can also assist in risk management. When the price is close to the extension but does not break through, or when there is a clear retracement signal, traders should consider stopping or closing their positions in order to minimize potential losses.

Please note that the use of any technical analysis tools should be combined with market conditions and personal trading strategies, and that investing in shares carries risks. The information provided is for reference only.

Potential Benefits of buying Tesla shares in Australia

The benefits of buying Tesla shares in Australia mainly include the following:

1. Global leader in the new energy vehicle market: Tesla, as the global leader in the new energy vehicle industry, has benefited from the continued rise in global new energy vehicle penetration due to its brand influence and innovative power to drive business ecosystems globally.

2. Technology and innovation advantage: Tesla has pioneered new approaches in manufacturing, software design and electronic architecture, enabling it to launch innovative products faster than its competitors. Tesla has invested heavily in artificial intelligence infrastructure, with notable developments in Optimus robotics and advances in FSD technology.

3. Market growth potential: There is still much room for improvement in the global penetration rate of new energy vehicles, especially in regions such as South America, Australia and Africa, and Tesla, as an industry leader, is expected to benefit from market growth in these regions.

4. Share price growth potential: According to analysts, Tesla's share price has an upside of approximately 18.7% to 32.9% relative to its 2024 adjusted net profit per share, indicating that its shares have growth potential.

5. Political interests: As Musk and Trump become closer, according to Reuters Trump has officially appointed Musk to lead the Office of Government Efficiency. Musk will be a potential key player in making decisions that will help accelerate Tesla's growth in the auto industry. Trump could also cut the Biden administration's tax breaks for electric cars, which would give Tesla will a competitive advantage over other manufacturers.

Potential Risks of buying Tesla shares in Australia

By buying Tesla shares in Australia, investors may be exposed to the following:

1. Slower sales growth: In the first half of 2024, Tesla experienced a 6.5% decrease in electric vehicle deliveries compared to the same period last year, and the deliveries in the third quarter also failed to meet the expectations set by Wall Street. The company has lowered prices over the past year to stimulate demand, but this has led to a continued decline in gross margins, which are now down to half of their peak three years ago.

2. Rising raw material costs: Tesla, like other electric car makers, faces the risk of rising costs for key raw materials such as lithium, neodymium and cobalt, which are all important components of electric vehicle batteries and motors.

3. Market competition: Tesla's technological advantage may be challenged as market competition intensifies with the introduction of electric vehicles by an increasing number of traditional automakers and new entrants.

Final thoughts on buying Tesla shares

Trump election is a double-edged sword for Tesla. On the one hand, the Trump administration may revoke or reduce electric vehicle tax credits, and Tesla, as an industry leader with its technological advantage and production scale, could bring a competitive advantage in a non-subsidised environment. On the other hand this policy change could also dampen consumers' willingness to purchase electric vehicles, which could affect Tesla's sales and market share.

Tesla's Autopilot technology may be accelerated by Trump's policies. Tesla's recently unveiled self-driving "Cybercab" robot cabs are expected to go into production in 2027, but investors now believe that timeline could be moved up. In addition, Tesla's business in China is showing positive signs.

In summary, the long-term growth prospects for Tesla share remain favorable despite some policy uncertainties and challenges. However, investing in shares always involves risks, and investors should consider their decisions carefully and in conjunction with their personal investment strategies.

FAQs about buying Tesla shares

1. Is it a good idea to buy Tesla shares?

Tesla's market position and expanding share as a leader in the electric vehicle industry, as well as continued advancements in fully automated driving technology, which is expected to result in the full integration of Autopilot functionality by 2026, could lead to new revenue streams. Despite the uncertainty of the Trump administration's policy on electric vehicles, this could indirectly favor Tesla given Trump's good relationship with Musk. Meanwhile, Tesla's financial performance has been solid, and its share price has fluctuated recently but is generally trending positively. However, investing in Tesla also faces risks including increased competitors and global supply chain challenges.

2. Is Tesla good for long term investment?

Tesla's leadership in the electric vehicle market and its ability to continue to innovate give it strong growth potential, and financial reports show the company is growing both revenue and profit, with the energy business in particular outperforming; this is despite risks such as competitor pressure and supply chain issues. In the long run, Tesla plans to open up new markets by developing fully autonomous driving technology and humanoid robot Optimus, but its high valuation multiple also implies higher risks. Therefore, investors should fully assess Tesla's investment value and their own risk tolerance.